Borgess VNA Home Health and Hospice to be consolidated as part of new statewide company

KALAMAZOO,
MI –Borgess VNA Home Health and Hospice is being folded into a new statewide
home health and hospice company.

The new Reverence Home Health and Hospice plans to open Jan. 1, with
Linda Young, former administrator of Borgess VNA, as its first president. Clinical services offered by Reverence, which will be headquartered at Genesys
Health System in Grand Blanc, will include home health, hospice, infusion
services, telehealth monitoring and palliative care.

The
consolidation of five statewide sites, which Young said should not lead to layoffs in Southwest
Michigan, comes at a time when Medicare reimbursements to hospitals are
declining and health-care providers are adjusting to changes as provisions of
the 2010 Patient Protection and Affordable Care Act take effect.

"Definitely
health care reform had a lot to do with our envisioning of the future. To remain competitive, we had to find additional efficiencies," said Young. "I think
the regionalization that we are under way with will make our local home-care
and hospice offerings much stronger and more available. ... Instead
of running independent programs across the state, we'll have one stronger
statewide organization that will prepare us better for the future."

It also
comes at a time when aging baby boomers surveyed say they want to remain in
their homes for as long as possible. Their sheer numbers, 76 million, and the
need for people to care for them, should make home health care aides the
fastest growing job over the next decade, according to the U.S. Labor
Department, which forecasts a need for an additional 1.3 million workers.

"I really
believe that home care will be a wave of the future," said Young. "People
really do want to be in their home or a community setting, versus acute care or
facility-based care."

The new Reverence will have 590
employees in Michigan caring for 2,000 patients a day and $62 million in revenue.
It expects to have $80 million in annual revenue by 2017 and have more than 800
workers, Young said.

Like other
area health-care providers, Ascension is looking to create economies of scale, share
best practices and streamline operations to reduce costs. Earlier this month,
Bronson Healthcare announced a merger with HealthCare Midwest, both of
Kalamazoo, as did Henry Ford and Beaumont on the east side of the state.

Since 2009, hospitals have seen
their Medicare reimbursements fall by 15 percent – from $100 to $85.50,
according to Crain's Detroit Business. Next year, rates are scheduled to be cut
2.25 percent more. If Congress doesn't come up with a bipartisan deal to avoid
the so-called "fiscal cliff," $1.2 trillion in automatic spending cuts and tax
hikes, rates will drop an additional 2 percent.

All of
the local clinical jobs and management will remain housed at 348 N. Burdick St., in Kalamazoo, Young said. But instead of each of the sites having independent departments, some will just be held at one of the statewide locations.

Under the
new company, Southwest Michigan clients will be able to receive infusion
services, which had not been offered here before, Young said. So, for example,
someone needing antibiotics could receive a series of IVs at home rather than going to a
hospital.

"The real
goal is to grow and expand," said Young. "Our focus really is on clinical growth
and outreach to patients."